LloydsTSB Save The Change Fun Loophole

mary

In many cases it will be a case of, if you ticked boxes saying you didn't want any "publicity" material from your bank, you have in the process by logic therefore declined to receive information from them about new promotions.

paulus1967

Andyboy wrote:

Thanks Guys (and Gals)

First 99p just been swept and many more too follow....going to be busy for the next few days with paying off part of credit card debt (0% til 2008...so can spend it again as well!!!)

:T :beer: :j

I find that the quickest way to get my 0.99p's into my savings account is to pay MBNA credit card upto a maximum of 15 transactions a day on my card and 15 transactions on Jane's card (partner) if for any reason i forget the number of times i used the card i just ring up to get the card unblocked (0800 096 9779) and use option 1

Kathy12345

Well that's me done, got about £53 in the STC account now. I just have to remember not to put an extra penny on the fuel pump each time (I've become used to it now and forgot today!)

A previous poster mentioned a juice drink going through the till at just under £2 when it was meant to be £2.05 or something and they wanted the price put back up. It's amazing how this challenge takes over, I paid for my car tax this week using my debit card and wanted to pay them £100.01 but sadly no option for that. I can honestly say it's the first time in my life I've wanted to pay more tax than I do already!

:rotfl:

LittleVoice

Kathy12345 wrote:

It's amazing how this challenge takes over, I paid for my car tax this week using my debit card and wanted to pay them £100.01 but sadly no option for that.
:rotfl:

Did you do this in person? Could you have paid £99.01 by debit card and 99p cash?

lesandflynny

Just in case........and to ensure everybody has read the points in Martins thread at the front I have copied the T&C from Lloyds tsb below.

NOTE be sure to keep your account open and STAY in the scheme until your March matched savings are credited, this "will be before 1st May 2006".

Then read the stuff about taxing your savings at point 4, although it is only an example can somebody explain this, how can £10 turn into £8? Is this not 20%. I thought savings were taxed less than this (any tax regulators out there to explain this one, I have a regular tsb savings account how much tax will I pay? e.g. If I get the £50 in Feb and £50 in March (which I will because I am enjoying and would love to be entered into the draw too hha ha) and then Lloyds Match it. Will I end up with £160 from my £200, because the tax man has the other 40 quid, therefore I make £60 not £100......... still not bad for nothing but has anybody else got on to this point or am I off the agenda here? Went to th
Does anybody know what the tax is on my regular lloyds savings? I had already had my £100 pound spent, now I will have to rethink.

I am having so much fun. Only registered last Thursday and already reached £31.17, sure to hit the £50 in the next 5 days. I have been paying 1.01 into my egg offset mortgage using debit card, this way I get that little extra by offsetting the money spent against my mortgage interest - will this compensate me for the tax I pay on my savings now there's a puzzle I cannot work out.

I also went through the fast lane at asda a few times with 8p noodles. My daughter loves noodles and I usually by the more expensive type, tried these and they are fine so also saving there too....... also filled up with petrol at 5 different stations (on route of course) 5 x 10.01 instead of my usual fill in one go. Oh dear what a sado I am getting addicted but it is such fun.


Let you know when I hit £50+ for February.

Good luck everybody

T&C from Lloyds
1. From 1 February (or date of registration if after 1 February) to 31 March 2007 we will match the amount of “change” transferred to your nominated savings account up to a total amount of £50 in February and £50 in March.

2. Matching funds for February purchases will be credited to your nominated savings account before 1 April 2007 and for March purchases before 1 May 2007, providing that an eligible savings account is still open and you are still participating in the Save the Change scheme on the date that the matching funds are credited.
3.You will receive matching funds for all rounded up VISA debit card payments debited to your account during the promotional period except for reversed transactions.

4.Tax will be payable on your matched payment on the same basis as the interest on your nominated savings account. For example, if you currently receive interest net (after the deduction of income tax) on your nominated savings account and the amount to be matched is £10 you will receive £8 in matched funds. Example based on UK tax position. Offshore accounts may be subject to tax applicable to your country of residence.

5. We may withdraw the Save the Change February and March Matching promotion at any time.

paulus1967

So reading the above this means after i have gained £50.00 from March i could nominate another savings account fill that full of free money and so on .

LittleVoice

lesandflynny wrote:

(a) although it is only an example can somebody explain this, how can £10 turn into £8? Is this not 20%.

(b) If I get the £50 in Feb and £50 in March . . . Will I end up with £160 from my £200, because the tax man has the other 40 quid, therefore I make £60 not £100.........

(b) Does anybody know what the tax is on my regular lloyds savings? I had already had my £100 pound spent, now I will have to rethink.

.

(a) 20% of £10 is £2. So £8 is the amount after tax. 20% is the rate applied to interest paid by banks/building societies - unless you have registered as eligible for gross interest.

(b) Tax is only taken off the two separate February and March matched funds, not off your own savings (the amount swept from your current account). So you would have £50 from your own savings (earning interest as it went along too) together with £40 after tax (unless you qualify for gross interest). So the two months increase would be £180, not £160 or £200. (Though the taxed matching payments come later, of course.)

(c) As noted in (a) above, you will have 20% tax deducted from your interest. If you pay tax at 40%, you will have to pay extra through direct payment to IR.

(b)

lesandflynny

Oh that's a little better, not registered for gross tax as unsure if I am eligable.....

Now I can plan my £80 spend

p1an0player

lesandflynny wrote:

Then read the stuff about taxing your savings at point 4, although it is only an example can somebody explain this, how can £10 turn into £8? Is this not 20%. I thought savings were taxed less than this (any tax regulators out there to explain this one, I have a regular tsb savings account how much tax will I pay? e.g. If I get the £50 in Feb and £50 in March (which I will because I am enjoying and would love to be entered into the draw too hha ha) and then Lloyds Match it. Will I end up with £160 from my £200, because the tax man has the other 40 quid, therefore I make £60 not £100......... still not bad for nothing but has anybody else got on to this point or am I off the agenda here? Went to th
Does anybody know what the tax is on my regular lloyds savings? I had already had my £100 pound spent, now I will have to rethink.

4.Tax will be payable on your matched payment on the same basis as the interest on your nominated savings account. For example, if you currently receive interest net (after the deduction of income tax) on your nominated savings account and the amount to be matched is £10 you will receive £8 in matched funds. Example based on UK tax position. Offshore accounts may be subject to tax applicable to your country of residence.

I'm not a tax expert but I think the situation is as follows:

Tax on income is in bands of 0%, 10%, 22%, 40%.
The 22% rate is known as the basic rate band but for some reason savings income in this band is taxed at 20%.

In general, I think all taxpayers have interest on their savings taxed at 20%. However, higher rate taxpayers who pay 40% have to complete a tax return and pay the extra tax that way.

So, for Save the Change customers who have made the maximum number of transactions, I'm guessing that Lloyds will credit the savings account of non-taxpayers with the full £100 and taxpayers with £80. For higher rate taxpayers I think there will be a further £20 to pay via the tax return process.

I think the tax only applies to the gift from Lloyds, not the rounded up amount which belongs to the accountholder and is transferred from current account to savings account. I don't really understand why the gift from Lloyds is treated as interest and taxed as such.

LittleVoice

p1an0player wrote:

I don't really understand why the gift from Lloyds is treated as interest and taxed as such.

I believe it's because it is a payment they make in direct proportion (100%) of what you pay in (up to the £50 for each of the two months) and in that way is like normal interest - a return on your input.

It is different from cash backs (eg on credit cards) which are returning some of your money to you or flat rate inducements (eg Halifax's £100 for opening an account) which do not relate to a specific sum of money you pay in.